Having an excellent credit rating is essential if you wish to have financial freedom & flexibility. Your credit score is a 3 digit number that is determined from the history of your credit report and is just one element that lenders use to determine your borrowing power. Your credit score can influence what types of loans you are approved for as well the interest rate that you will pay on any loans you receive. All lenders have varying standards of what is considered “good credit” but it’s universally accepted that a good credit score is over 720.
With a range of 300 to 850, with 300 being the worst possible credit score, any score in the mid-700’s will yield lower interest rates and larger borrowing capability. It’s important to monitor your credit score and to keep building your score in order to receive the best possible interest rates and favorable credit approvals.
As a consumer, you should always have an idea of your current credit score and monitor it often in order to ensure that you keep it going in a positive direction. Missed payments, loan defaults and identity theft are just a few ways that your credit score can be negatively affected. Once you have determined your credit score, you will be able to use it to identify areas that you can improve as you track your score over time.